Article 7. Licensed Gun Dealers of California Penal Code >> Division 10. >> Title 4. >> Part 6. >> Chapter 2. >> Article 7.

(a) Any licensed gun dealer may take possession of any assault weapon or .50 BMG rifle for the purposes of servicing or repair from any person to whom it is legally registered or who has been issued a permit to possess it pursuant to this chapter.
  (b) Any licensed gun dealer may transfer possession of any assault weapon or .50 BMG rifle received pursuant to subdivision (a), to a gunsmith for purposes of accomplishing service or repair of that weapon. A transfer is permissible only to the following persons:
  (1) A gunsmith who is in the dealer's employ.
  (2) A gunsmith with whom the dealer has contracted for gunsmithing services.
  (c) In order for paragraph (2) of subdivision (b) to apply, the gunsmith receiving the assault weapon or .50 BMG rifle shall hold all of the following:
  (1) A dealer's license issued pursuant to Chapter 44 (commencing with Section 921) of Title 18 of the United States Code and the regulations issued pursuant thereto.
  (2) Any business license required by a state or local governmental entity.

In addition to the uses allowed in Article 5 (commencing with Section 30900), any licensed gun dealer who lawfully possesses an assault weapon or .50 BMG rifle pursuant to Article 5 (commencing with Section 30900) may do any of the following:
  (a) Transport the firearm between dealers or out of the state if that person is permitted pursuant to the National Firearms Act. Any transporting allowed by this section or Section 31050 shall be done as required by Sections 16850 and 25610.
  (b) Display the firearm at any gun show licensed by a state or local governmental entity.
  (c) Sell the firearm to a resident outside the state.
  (d) Sell the firearm to a person who has been issued a permit pursuant to Section 31000.